Learning from the aggregated optimum: decision rules for managing ameliorating food inventory
Alexander Pahr1, Martin Grunow1, Pedro Amorim2
1Technical University of Munich, Germany; 2INESC TEC, Faculty of Engineering of University of Porto, Portugal
The management of ameliorating food inventories with age-differentiated products entails a trade-off between immediate revenues and further maturation. We derive interpretable decision rules for purchasing, fulfilment, and issuance decisions under purchase price and decay uncertainty. We learn the rules from the optimal policy for an aggregated problem. A linear program facilitates scaling back. For a port wine industry case, our derived management strategies yield a substantial profit increase.